Gift Card gotchas

Here’s a couple of gift card gotchas …

I pulled these from Kiplinger’s Personal Finance article points 5 and 6 …

Gift cards displayed on open racks are vulnerable to theft of the card number. A thief can copy/photo the card’s number and then check to see when money has been added to that card. Before the card is used by your intended recipient, the thief has already used the card’s number for their purchase.

Limits Fees on Gift and Stored Value Cards: The act enhances disclosure on fees for gift and stored value cards and restricts inactivity fees unless the card has been inactive for at least 12 months. Fees must be disclosed on the packaging. Money can expire after 5 years the card has been loaded too.

More details about Gift Cards.

PS. I use gift cards too. However, I now try to send them via email through the store’s website since this reduces the chance the card would be subject to number theft as described above.

 

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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